du's holding company, EITC undergoes massive re-organisation
Shake-up aims at diversification of revenue streams in the face of changing market dynamics
Emirates Integrated Telecommunications Company (EITC), the holding company behind Dubai-based telco du, has overhauled its organisational structure, according to reports by The National.
The company has created three new divisions for Digital Lifestyle and Innovation, and ICT solutions, and has appointed two new deputy chief executives namely Fahad Al Hassawi and Farid Faraidooni, to head these divisions respectively. A third division named Infrastructure division will be headed by Saleem Al Blooshi, the company's new chief infrastructure officer. Eddy Skaf has been appointed as the chief strategy officer.
The ICT Solutions division will primarily focus on providing managed ICT services to governments and enterprises, while the Digital Lifestyle division is being said to have its focus on development and delivery of innovative lifestyle solutions like video and smart home solutions.
The announcement comes a few days after GITEX 2017, and few days before the publication of EITC's Q3 2017 results (on 31 October 2017).
Here, it might be worth mentioning that GITEX 2016 witnessed a similar move by the UAE incumbent, Etisalat, when it formed Etisalat Digital unit.
The company hasn't given any clear indications on whether Virgin Mobile UAE would be under the Digital Lifestyle division.
In its published financial results for the second quarter of 2017, the company delivered AED 3.26bn ($890m) in revenue. Net profit for H1, 2017 was down by 12.6% YoY.
Osman Sultan, EITC CEO had said that time: "Despite a steady performance during the quarter and the first half of the year, EITC continues to be impacted by challenging market conditions, with pressure on mobile rates and data monetisation.
"We will continue to invest in the future generation capacity of the business; EITC is a digital enabler and will be able to create new revenue opportunity as digital transformation for both consumers and enterprises opens up new markets."
As quoted by The National, Sultan has recently, said in a statement: "The rapid development of smart technology, combined with our increased reliance on cloud services and the explosive impact of big data and IoT (internet of things), has redefined the way people interact and how companies do business. This has changed both enterprise and consumer markets and compelled telecommunications service providers to adapt to these new market realities."
Commenting on the developments, Paul Black, Director of Telecoms and IoT, IDC Middle East, Turkey & Africa said: "It's a sensible decision as telcos need to reinvent themselves from merely being telcos to be major players in the digital eco-system. Transformation is key both internally and externally to better equip themselves to cater for the digital demands expected of them by all segments of their customers."